An all-equity firm has 1 million shares currently priced at $76 per share. The firm is considering issuing $28 million of permanent debt and using the proceeds to repurchase shares. The tax rate is 21%. What will be the total market value of the equity in millions after the debt is issued and the shares are repurchased?

Answer rating: 100% (QA)

To determine the total market value of the equity after the debt is issued and the shares are repurc... View the full answer